Tuesday, 26 July 2016
Last updated 6 hours ago
Jan 27 2011 | 11:51am ET
A Colorado hedge fund manager has pleaded not guilty to defrauding investors of $25 million.
Mark Yost waived indictment in Denver federal court yesterday. He has been charged with wire fraud, bank fraud, money laundering and making false statements to banks.
In September, Colorado regulators sued Yost and his firm, Yost Co., alleging that he spent clients funds on himself and lied about his Yost Partnership fund's returns. According to the state's Securities Division, Yost inflated the value of both the fund and its returns in order to reap larger fees. He also allegedly stole investor capital for personal use, including to pay the insurance premiums on his airplane. Yost also allegedly used his position as chairman of a bank to run something of a Ponzi scheme to repay several redeeming investors.
Yost Partnership's accounts had less than $20,000 at the end of 2009, the division said, and not the $28 million Yost claimed.
Yost was released on his own recognizance. If convicted, he faces up to 30 years in prison.